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<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: March 11, 1994
Commission file number 1-41
SAFEWAY INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 94-3019135
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
FOURTH AND JACKSON STREETS
OAKLAND, CALIFORNIA 94660
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, (510) 891-3000
including area code --------------
</TABLE>
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
<PAGE> 2
SAFEWAY INC.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) The following exhibits are filed as part of this Report:
12.1 Computation of Ratio of Earnings to Fixed Charges
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<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SAFEWAY INC.
------------
REGISTRANT
Date: March 11, 1994 By: /s/ F.J. Dale
-------------------------------
F. J. Dale
Group Vice President Finance
3
<PAGE> 4
Exhibit 12.1
SAFEWAY INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in millions)
<TABLE>
<CAPTION>
1993 1992 1991 1990 1989
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Income before income taxes,
extraordinary loss and cumulative
effect of accounting changes $ 216.3 $ 197.4 $ 166.2 $ 194.7 $ 94.0
Add interest expense 265.5 290.4 355.4 384.1 382.8
Add interest on rental expense (a) 88.0 88.0 83.0 82.0 74.0
Equity in (earnings) loss of unconsolidated affiliates (33.5) (39.1) (45.8) (25.5) 4.0
Less gain on common stock offering by
unconsolidated affiliate - - (27.4) - -
Add minority interest in subsidiary 3.5 1.7 1.3 1.4 1.2
------- ------- ------- ------- -------
Earnings $ 539.8 $ 538.4 $ 532.7 $ 636.7 $ 556.0
======= ======= ======= ======= =======
Interest expense $ 265.5 $ 290.4 $ 355.4 $ 384.1 $ 382.8
Add capitalized interest 4.2 8.0 10.6 3.3 1.4
Add interest on rental expense (a) 88.0 88.0 83.0 82.0 74.0
------- ------- ------- ------- -------
Fixed charges $ 357.7 $ 386.4 $ 449.0 $ 469.4 $ 458.2
======= ======= ======= ======= =======
Ratio of earnings to fixed charges 1.51 (b) 1.39 1.19 (c) 1.36 1.21
======= ======= ======= ======= =======
</TABLE>
(a) Based on a 10% discount factor on the estimated present value of future
operating lease payments.
(b) Safeway's ratio of earnings to fixed charges for the 52 weeks ended
January 1, 1994, was adversely affected by a $54.9 million charge to
operating and administrative expense for severance payments to be made to
retail employees in the Alberta, Canada division as part of a voluntary
employee buyout. Excluding this charge the ratio of earnings to fixed
charges for 1993 would have been 1.66.
(c) The ratio of earnings to fixed charges for 1991 was adversely affected
because 1991 earnings included a charge to operating profit of $115
million in connection with the bankruptcy of AppleTree Markets, Inc.
("AppleTree"). The $115 million charge was an estimate of the eventual
net lease and related cash payments which Safeway expected to make over a
period of up to 16 years in connection with any liability Safeway may have
on the leases assigned to AppleTree as part of the sale of the Company's
former Houston division. Excluding this charge, the ratio of earnings to
fixed charges for 1991 would have been 1.44.
4
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